Many owners of intellectual property license their rights to third parties who pay the licensor a royalty for their use. Often the royalty payable is calculated as a percentage of the sales revenue that the licensee generates.
Whether our client is licensor a licensee, the accuracy of the royalty calculation is important to ensure that our client is receiving their full entitlement to royalties, or is not paying too much.
We are familiar with the contractual rights of licensors and licensees under license agreements, or any arrangements where a payment is contingent on another factor such as volumes sold or revenue. We ensure that the royalties declared are valid, complete and have been calculated in accordance with the contract.
We help clients to recover money that is contractually due to them, or to identify errors early to avoid harsh penalties.
To find out more you can also contact your local BDO adviser.